What is MC Mining Financial Strength?
MC Mining has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
MC Mining Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
MC Mining did not have earnings to cover the interest expense.
MC Mining's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.41.
As of today, MC Mining's Altman Z-Score is -9.69.
Competitive Comparison of MC Mining's Financial Strength
For the Thermal Coal subindustry, MC Mining's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MC Mining's Financial Strength Distribution in the Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, MC Mining's Financial Strength distribution charts can be found below:
* The bar in red indicates where MC Mining's Financial Strength falls into.
MC Mining Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
MC Mining's Interest Expense for the
months ended in Dec. 2023 was A$-1.13 Mil. Its Operating Income for the
months ended in Dec. 2023 was A$-7.63 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$2.89 Mil.
MC Mining's Interest Coverage for the quarter that ended in Dec. 2023 is
| MC Mining did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
MC Mining's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
MC Mining has a Z-score of -9.69, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -9.69 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MC Mining (ASX:MCM) Business Description
Traded in Other Exchanges
Address
7 The Esplanade, Suite 8, Mount Pleasant, Perth, WA, AUS, 6153
MC Mining Ltd is a coal mining company in South Africa. It has three reportable segments namely Exploration, Development, and Mining. The Exploration segment involves in search of resources for commercial exploitation and viability and determines technical feasibility. The Development segment is engaged in commissioning facilities to extract, treat, and transport products from the mineral reserve and other preparations for commercial production. The Mining segment, which is the key revenue generator is involved in the day to day activities of obtaining a saleable product from mineral reserve on a commercial scale. Some of its key projects include Uitkomst Colliery, the Makhado project, and the Greater Soutpansberg Project. Its geographical segments include Australia and South Africa.
MC Mining (ASX:MCM) Headlines
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